Plastics – A sustainability story worth writing in our own country

Sunil BagariaISRI: Chair Person of Plastics Division

Owner: GDB International Inc., New Jersey

Re-Imagining how we can manage Plastic Scrap formerly shipped overseas

A linear system consisting of

Extracting petroleum resources

Producing new plastics

Using them briefly; and then

Disposing them – (Often into the environment & landfills)

Fundamental Problem with the Current Plastic Economy

• Plastic Scrap is Valuable Raw Material

If it is a raw material for China, then it is a raw material for USA as well. Why do we forget this.

• “Recycling at Source” : Society that produces it, must recycle it.

• Cannot depend on others to do recycling for us.

• Availability of Scrap will help in availability of PCR

First China and now South East Asian countries.

China Embargo : Big Opportunity for Recycling Industry

Southeast Asian Countries : Is this Recycling ?

Pictures of a Recycling Company in a Southeast Asian Country

Big Oil to invest $ 40 Billion in new Petrochemical Facilities in USA alone

Problem will Worsen

• PEPSICO to sell water in Aluminum Cans. Will reduce 8000 tons of Virgin Plastic Use

• Source: https://www.newsweek.com/pepsi-plastic-bottles-aquafina-aluminium-cans-1446817; Ewan Palmer; July 1st, 2019

• Coke will bottle Dasani Bottle Water in Aluminum Cans starting August 2019

• Source: https://www.cnn.com/2019/08/13/business/coca-cola-dasani-cans/index.html; Danile Wiener Broner, August 13th, 2019

Brand Owner Response to Plastic Waste

• Hasbro phasing out Plastic Packaging by 2022.• Unilever to cut down Plastics use by 15% in line with

“Sustainable Living plan” goals.

Source: https://www.cnbc.com/2019/07/14/global-plastic-polluter-unilevers-plan-to-stop-destroying-the-oceans.html; Kat Eschner;July 14th, 2019

Brand Owners have a Choice but not Producers

• Nestle launches paper packaging for snack bars.

• New snack bar wrapper is composed of paper and water-based coating to guarantee same shelf life as plastic.

Source: https://www.reuters.com/article/us-nestle-packaging/nestle-launches-paper-packaging-for-snack-bars-idUSKCN1TX2W9; Silk Koltrowitz, Siddharth Cavale, July 2nd, 2019

Brand Owners have a Choice but not Producers

Source: https://www.economist.com/graphic-detail/2019/07/24/ever-more-countries-are-banning-plastic-bags

Plastic Bag Ban

• ACC/WRAP : Collect 2 billion pounds of film by 2020 in USA (1 million Tons)

• 52% of the film was exported till 2016.

• After National Sword program: 1.007 billion pounds collected in 2017, down from 1.322 billion pounds in 2016

• Demand for PCR is key to Recycling Success.

• Create Demand for PCR by legislation for Recycling success.

Plastic Film: Case In Point

Film BalesProcessed Clean Film Bales

Recycled Pellets

Garbage Bags

Grocery bags

Green Recycling Bags

GDB Movement toward true Circular Economy Business Model

Generators of Film

Retail Stores

Household

Commercial Warehouses

Post 2017Prior to 2017

GDB’s Preparedness to handle China setback

3 Production Lines to make PCR 4200 lbs / hour 18 new employees

Recycling at Home: Creates more job opportunities

China Embargo : Setback or Opportunity

Different Grades of Film recycled at GDB Facility

Grade A Grade B Garment Bags

Color Film Grocery Bags Mattress Bags

• California• 10% in all trash can liners• Currently, 20% PCR content in plastic film bags labelled as reusable• By 2020, 40% PCR content in plastic film bags labelled as reusable

• Washington (still pending final approval)• By 2020, 40% PCR content in plastic film bags labelled as reusable

• Oregon + NY bag bans allow for reusable film bags, but don’t specify recycled content

PE Film PCR Legislation in North America

• Cost-Competitiveness of PCR PE• Low pricing for virgin PE makes it

difficult for PCR PE to compete• Without demand from brands

and/or governments, it will not be used

• >70% of our customers are supplying the California market, which requires use of PCR PE film

Prime LLDPE Butene pricing dropped over the past 5 months to its lowest point in over 10 years. Chart shows Oct. 2014 – July 2019. The Plastics Exchange LLC.

Challenge in Marketplace

Recycling is easier said than done

Just because a product is recyclable doesn’t mean it will get recycled

No business is worth doing at the cost of the environment

Recyclable v/s Recycled

• Drafted a “call to action” describing the challenge & proposing solution• Would like to see government legislation or procurement policy requiring PCR

usage • Focus on garbage bags and grocery bags

Minimum Recycled Content for Film Products

• Black Garbage bags • Contractor Bags• Grocery Bags• Pipes for various uses• Lawn edging• 20% PCR is easily achievable by all major

plastic bag manufacturers at pricing comparable to 100% virgin

Easy way to increase use of PCR Resin in Short-Term

• Goals of this PCR mandate:

• Lessen reliance on export markets for recyclables produced in North America• Reduce plastic litter by enhancing plastics’ value throughout its full life cycle • Reduce carbon emissions by replacing the use of virgin plastic• Boost scale allowing PCR resin to be more cost-competitive with prime resin

Recycled Content Minimum for PE Film

• www.recyclemorebags.com• Industry associations• Plastic recyclers• MRFs• Municipalities• Environmental non-profits• Industry consultants

Signatories on Call-To-Action

• Inconsistency in Quality of Film scrap• Maintaining the consistency in quality of pellets• Labor intensive operation• Maintaining a “safe” work environment• Production inconsistency• PCR Competing with virgin prices• Create demand for PCR by Legislation;• Voluntary efforts or mandatory regulations.• Extreme low price PE Resin

• Better Margins ( on per pound basis )• Bring Manufacturing back to USA• Provide “Closed Loop Recycling Program” to the Generator• Value Addition by making certified “Recycled Containing” products• Transition from Trader to Manufacturer

Challenges

Rewards

• Provider of Recycling & Sustainability solutions

since 1993

• Customer Base in over 65 countries

• 1,600,000 sq. ft. of company owned warehouses

across 5 states in USA

• Markets “recyclables” and “recycled” products in

Plastics, Paints, Metals & Paper

• Started “PCR” production in 2019

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About GDB International Inc.

Thank You

Our Earth, Our Responsibility